"The situation in the Ukraine is causing instability that is pushing up the price of oil. And that was the main negative driver of today's downwards revision," said Tony Tyler, director-general and CEO of the IATA.

The revised forecast from the Geneva-based IATA, which represents 84 percent of total air traffic, is projecting $1.87 billion in profit, down from the $19.7 billion it forecasted for 2014 last December. The group said oil prices are expected to rise from its current $104.50 per barrel to $108 a barrel.

Still, the forecast for $18.7 billion would beat last year’s mark of $12.9 billion in profit earned by the airlines.

In addition to the problems in Ukraine, Tyler noted the Venezuelan government's decision to keep foreign airlines from taking $3.7 billion in earnings out of the country and the disappearance of Malaysia Airlines Flight MH370 last week as contributing factors to the profit forecast decrease.

Chicago Regional Transportation Authority sues American Airlines

Chicago’s Regional Transportation Authority (RTA) has filed suit against American Airlines, alleging that American is engaged in an "unlawful scheme" by its fuel subsidiary's false reporting of the site of bulk jet fuel sales to avoid paying taxes due to the RTA.

That is, the RTA is accusing American of purchasing its jet fuel from an office in Sycamore, Ill., and paying taxes there instead of in Chicago, where it most likely is using the jet fuel.

The suit was filed in Cook County Circuit Court. The RTA is the same government agency that sued United Airlines for the same thing last year.

RTA estimates American owes the City of Chicago $11.5 million, Cook County $3.8 million, and the RTA system, which includes Chicago Transit Authority, Metra and Pace, $8.3 million.

The RTA alleges American purchases hundreds of thousands of gallons of fuel in a county that is 50 miles from its hub at Chicago O’Hare, and in a city that does not have an airport.

"The world's largest airline has a responsibility, like every other business or individual, to pay the taxes it owes and that are used to support the public infrastructure that allows the airline to operate," said RTA Chief of Staff Jordan Matyas. "Millions of passengers, as well as airline employees, use mass transit to get to O'Hare." Additionally, emergency personnel from local governments serve the airport and respond to serious situations there. They also rely on those tax dollars to support their operations and to protect the safety of American's employees and customers."

In a statement, American said it believes it is in compliance with the law.

Aeromexico and WestJet strengthen ties

Aeromexico, Mexico's leading airline, said today it has increased its cooperation with Canadian airline WestJet, providing passengers with added connectivity to more destinations in Mexico and Canada with more competitive fares.

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